Brazil ETF bets 95% on one MSTR stock
OranjeBTC's DIGY11 ETF will put 95% of its portfolio in Strategy's STRC preferred shares, targeting a 17-19% yield.
Brazil's largest bitcoin treasury company, OranjeBTC, is preparing to list an ETF that puts 95% of its money into a single security: Strategy's STRC preferred stock. The remaining 5% goes to Strive's SATA. Trading is expected to start in early September on B3, Brazil's exchange, denominated in reais.
The numbers behind the yield
The fund, called DIGY11, is targeting annual distributions equal to Brazil's CDI interbank rate of 14.15% plus 3 to 5 percentage points, net of an estimated 1.30% total cost, according to CoinDesk. That points to a headline yield in the high teens, built on STRC and SATA coupons currently running at 12.5% and 13.1% in dollars. OranjeBTC will hedge the dollar exposure with one-month FX forwards rolled monthly, and charge a 0.90% management fee on top. The firm itself holds 3,950 BTC, worth around $250 million, giving it a direct stake in the bitcoin-treasury ecosystem it's now packaging for retail. For comparison, the 21Shares Strategy Yield ETP in Europe, which holds STRC alone and reinvests distributions rather than paying them out, has gathered just $17.6 million since launch. VanEck's $2.44 billion preferred-stock fund PFXF holds about $251 million across four Strategy preferred securities, roughly 10% of that portfolio. Brazil's retail crypto-fund market isn't small: 576,000 investors held 13.7 billion reais, about $2.6 billion, in crypto ETFs as of April 2025.
A yield product with one issuer
Call this what it is: a bet on Strategy's ability to keep paying a fixed coupon on preferred stock, wrapped in a currency-hedged shell and sold to Brazilian savers chasing a rate above their own risk-free benchmark. STRC and SATA pay recurring dollar distributions, and the underlying bitcoin stays on the issuing companies' balance sheets, unpledged to preferred holders. That means DIGY11 investors are taking credit risk on Strategy's capacity to service that coupon, not a claim on bitcoin itself. A 95% concentration in one issuer's preferred equity is an unusual structure for a retail-facing fund anywhere, let alone one advertised against a local risk-free rate that has nothing to do with Strategy's balance sheet. The advertised 3 to 5 percentage point spread over CDI depends on two moving parts staying favorable: the preferred-share distribution rate and the U.S.-Brazil interest-rate gap that makes the FX hedge worthwhile. If either moves against the fund, the net spread compresses fast, and OranjeBTC has been explicit that the estimate excludes DIGY11's own share-price moves and guarantees nothing.
What would confirm or break the thesis
Watch what happens to STRC's coupon and Strategy's ability to keep funding it as the fund scales. A cut, a suspension, or a widening credit spread on the preferred stock would flow straight through to DIGY11's distributions, and there's no bitcoin collateral behind the shares to cushion it.